MANAGEMENT STOCK OPTION PLAN

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 127

34. INTEREST INCOME

Interest income was derived from the following: Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Government Recapitalization Bonds 8,182,196 15,390,066 9,337,554 6,052,512 Loans 8,809,062 8,375,139 5,487,269 2,887,870 Securities 952,491 867,670 627,672 239,998 Placements with Bank Indonesia and other banks 519,438 363,720 246,798 116,922 Fees and commissions 507,394 495,060 317,582 177,478 Others 174,589 65,400 20,908 44,492 19,145,170 25,557,055 16,037,783 9,519,272 Included in interest income from loans and others is syariah income for the years ended December 31, 2004, the eight-month period ended December 31, 2003, and the four-month period ended April 30, 2003 amounting to Rp511,061, Rp172,971 and Rp65,726, respectively, with details as follows: Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Murabahah income 400,111 205,655 146,384 59,271 Musyarakah income 83,368 18,820 16,034 2,786 Others 27,582 14,222 10,553 3,669 511,061 238,697 172,971 65,726

35. INTEREST EXPENSE

Interest expense was incurred on the following: Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Time deposits 5,147,235 12,523,507 7,214,006 5,309,501 Savings deposits 2,112,420 2,323,917 1,445,616 878,301 Demand deposits 1,131,117 1,294,478 844,556 449,922 Fund borrowings 349,484 532,706 320,285 212,421 Securities issued 362,396 265,027 239,290 25,737 Subordinated loans 310,138 382,636 247,240 135,396 Loan capital 35,309 28,647 18,404 10,243 Others 74,434 86,797 28,731 58,066 9,522,533 17,437,715 10,358,128 7,079,587 Included in interest expense from time and savings deposits is syariah expense for the years ended December 31, 2004, the eight-month period ended December 31, 2003, and the four-month period ended April 30, 2003 amounting to Rp242,675, Rp104,271 and Rp39,492, respectively. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 128

36. OTHER OPERATING INCOME - OTHERS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Accretion in the realizable value of the security and effective reduction of principal related to SUFRNs Notes 15, 29 and 30 144,830 113,316 89,458 23,858 Others 557,487 522,636 376,072 146,564 702,317 635,952 465,530 170,422

37. PROVISION FOR POSSIBLE LOSSES ON EARNING ASSETS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Provisionreversal of allowance for possible losses on: Current accounts with other banks Note 4e 2,112 331 438 107 Placements with other banks Note 5f 19,428 19,522 3,389 22,911 Securities Note 6g 45,622 10,251 22,551 32,802 Other receivables - trade transactions Note 8d 26,651 41,863 46,130 4,267 Securities purchased with agreements to resell Note 9 4,800 - - - Derivative receivables Note 10 7,462 6,717 6,145 572 Loans Note 11B.j 275,662 1,056,661 453,382 603,279 Acceptances receivable Note 12d 6,626 29,607 49,859 20,252 Investments in shares of stock Note 13c 1,922 35,626 70,823 35,197 371,517 1,179,414 645,063 534,351

38. REVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES - OTHERS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Reversal of allowanceprovision for: Possible losses on legal cases Note 28 259,172 569,563 451,103 118,460 Possible losses on other assets Note 15 - 166,192 165,094 1,098 Others 50,000 82,634 82,634 - 309,172 320,737 203,375 117,362 39. GAINSLOSSES FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERN- MENT RECAPITALIZATION BONDS Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Securities 71 52,306 20,764 31,542 Government Recapitalization Bonds 66,201 1,364 747,476 748,840 66,272 50,942 768,240 717,298